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According to the Chinese ambassador to the Latin American nation, Zhu Qingqiao, his government wants Mexico to join its One Belt, One Road Initiative.
As United States (U.S.) President, Donald Trump, keeps dealing tariffs to key economic partners, undersecretary of Foreign Trade from the Mexican Ministry of Economy, Luz Maria De la Mora affirmed on Monday that Mexico and China can band together to face upcoming international trade challenges.
“Mexico is a friend and partner to China. We know that with China, Mexico can be stronger, and with Mexico, China can be a stronger country too,” the government official told Chinese representatives at the Forum of Economic Cooperation and Investment between Mexico and China (Guangdong) 2019 held in Mexico City.
De la Mora acknowledged that China's investment in Mexico represents a mere one percent of the total flow that the country has received between 1999 to 2018, which represents about US$ 1 billion.
Yet both nations aspire to push for more Chinese presence in the Mexican markets. According to the Chinese ambassador to the Latin American nation, Zhu Qingqiao, his government wants Mexico to join its One Belt, One Road Initiative.
"We do not have any doubt that the approach with China through the commercial path and investment will allow us to approach Mexico’s commercial policy, which is based on the three axes of inclusion, innovation, and diversification,” De la Mora added.
These comments come at a tense moment, as Trump has upped his trade-war with China and now has threatened Mexico with applying five percent tariffs on Mexican goods starting on June 10 if Mexico does not halt the flow of migration, mainly originating from Central America en route to the U.S.-Mexican border.
The U.S. president later said that tariffs will gradually rise to 25 percent if Mexico does not comply with the demands. If applied these measures would cause major damage to Mexico’s economy, as about 80 percent of its exports are directed to the U.S.
A Mexican government delegation met with U.S. representatives on Wednesday but no deal was reached. Mexican President Andres Manuel Lopez Obrador has an official list of U.S. products that could be subject to retaliatory tariffs, officials said in Mexico City.
The Mexican peso fell as much as 0.5% after Moody’s Investors Service lowered Mexico’s outlook to negative from stable, and minutes later Fitch downgraded the country to BBB. pic.twitter.com/btmzVfA3x4
While with China, bilateral relations continue on a downward spiral. After the latest round of trade-talks didn't reach a comprise on May 10, Washington hiked U.S. tariffs by 25 percent on US$200 billion worth of Chinese goods. China retaliated with higher tariffs on most U.S. imports on a revised US$60 billion target list.
On Wednesday, the International Monetary Fund (IMF) calculated that the tit-for-tat trade war will cost US$455 billion in lost output next year.